CHENNAI: This time, the Global Investors Meet will also showcase the realty sector in Tamil Nadu. Official sources claim the government has managed to woo Rs 25,000 crore worth investments in the realty sector alone. The Combined Development Regulations and Building Rules 2018 — which introduced an online system of obtaining permits — is likely to garner attention.
The new zoning regulations, floor space index and minimum road width for non-high rise buildings would also be under the spotlight. Sources say the focus would be on commercial or office space market, which is currently dominated by the IT and ITES sectors with a 57 per cent share followed by banking, financial services and insurance (BFSI) sector with 13 per cent and the engineering and manufacturing sector with 11 per cent.
A recently released study by CBRE claims the demand for office space is highest among technology companies, followed by other sectors like flexible space operations, engineering & manufacturing firms and e-commerce companies. Rents for commercial spaces have increased by 3 to 6 per cent on quarterly basis in the non-IT Special Economic Zone on the Old Mahabalipuram Road.
IT spaces in Ambattur also witnessed an increase in rentals by 7 to 9 per cent on quarterly basis due to limited availability of space in prominent IT parks, said the study CBRE study. “Every year, there is a demand of 4.5 million square feet of IT space but there is no supply,” says A Shankar, a Chief Operating Officer of Jones Lang LaSalle.
“However, in the next five years, about 20 million to 26 million sq feet of IT space will be created in Chennai,” says Shankar. The State government, meanwhile, is also looking to woo investments in the affordable housing sector, corridor-based development of areas and smart cities.
“Private developers are scouting for land across various cities in the State for the affordable homes project. Many of them are likely to tie up with the government on the same,” says Shankar. “A lot of activity is also expected on infrastructure development, such as the airport expansion and possible extension of the Chennai Metro.”